1. Copyright © 2012 by Cengage Learning. All rights reserved.5- 1 Chapter 5 Information for Making Human Resource Decisions Prepared by Joseph Mosca Monmouth University

2. Copyright © 2012 by Cengage Learning. All rights reserved.5- 2 Learning Objectives 1.Describe human resource planning as a source of information for decision making. 2.Discuss strategy as a source of information for making human resource decisions. 3.Discuss economic conditions as a source of information for making human resource decisions. 4.Describe job analysis as a source of information for making human resource decisions. 5.Discuss the job analysis process and Identify and summarize common job analysis methods.

3. Copyright © 2012 by Cengage Learning. All rights reserved.5- 3 What Is Human Resource Planning? HR planning is the process of forecasting the supply and demand for human resources within an organization and developing action plans for aligning the two.

4. Copyright © 2012 by Cengage Learning. All rights reserved.5- 4 Information Systems A human resource information system is an integrated and increasingly automated system for maintaining a database regarding the employees in an organization.

5. Copyright © 2012 by Cengage Learning. All rights reserved.5- 5 Labor Force Trends and Issues Currently the workforce is diverse in numerous ways. The average age of the U. S. workforce is gradually increasing and will continue to do so. Gender differences with more and more women entering the workforce Changing ethnicity

6. Copyright © 2012 by Cengage Learning. All rights reserved.5- 6 Strategy as a Source of Information Implications of a growth strategy:  Need to hire new employees Implications of a stability strategy:  Implement training to upgrade employee skills  Implement programs to help reduce turnover Implications of a reduction strategy:  Find ways to reduce workforce Normal attrition processes Retirement (including early retirement) Layoffs

7. Copyright © 2012 by Cengage Learning. All rights reserved.5- 7 Economic Conditions as a Source of Information Rate of unemployment is calculated by the Bureau of Labor Statistics as the percentage of individuals looking for and available for work who are not presently employed. Market wage rate is the prevailing wage rate for a given job in a given labor market.

8. Copyright © 2012 by Cengage Learning. All rights reserved.5- 8 What Does a Job Analysis Provide? It provides fundamental input to the HR manager such as knowledge, skills, and abilities (KSA) which are the fundamental requirements necessary to perform a job. Job families are groups of jobs with similar task and KSA requirements.

9. Copyright © 2012 by Cengage Learning. All rights reserved.5- 9 The Job Analysis Process Job Analyst: the individual who performs job analysis in an organization Subject matter experts (SMEs): An individual presumed to be highly knowledgeable about a job and who provides data for job analysis.  S/he may be an existing job incumbent, supervisor, or other knowledgeable employee.

10. Copyright © 2012 by Cengage Learning. All rights reserved.5- 10 Specific Job Analysis Techniques Narrative job analysis: the most commonly used method is to have one or more SMEs prepare a written narrative or text description of the job The Fleishman job-analysis system: procedure that defines abilities as the enduring attributes of individuals that account for differences in performance; it relies on the taxonomy of abilities that presumably represents all the dimensions relevant to work

11. Copyright © 2012 by Cengage Learning. All rights reserved.5- 11 Specific Job Analysis Techniques (con’t) Task Analysis Inventory: a family of job analysis methods, each with unique characteristics; each focuses on analyzing all the tasks performed in the focal job. Functional job analysis: attempt to have a single job analysis instrument that can be used with a wide variety of jobs.

12. Copyright © 2012 by Cengage Learning. All rights reserved.5- 12 Specific Job Analysis Techniques (con’t) The Position Analysis Questionnaire: standardized job analysis instrument consisting of 194 items reflecting work behavior, working conditions, or job characteristics that are assumed to be generalizable across jobs Management Position Description Questionnaire (MPDQ): a standardized job analysis instrument, similar in approach to the PAQ, which also contains 197 items. The focus is on managerial jobs and the analysis is done in terms of 13 essential components of all managerial jobs.

13. Copyright © 2012 by Cengage Learning. All rights reserved.5- 13 Specific Job Analysis Techniques (con’t) Critical Incidents Approach: focus is on critical behaviors that distinguish between effective and ineffective performers

14. Copyright © 2012 by Cengage Learning. All rights reserved.5- 14 Job Description A job description lists the tasks, duties, and responsibilities for a particular job and specifies the major job elements, provides examples of job tasks, and provides some indication of the relative importance of the effective conduct on the job.

15. Copyright © 2012 by Cengage Learning. All rights reserved.5- 15 Job Specification Job specification focuses on the individual who will perform the job and indicates the knowledge, abilities, skills, and other characteristics that an individual must have to be able to perform the job.